Lake Havasu Storage Investing: Guide for First-Time Investors
Lake Havasu City is a promising market for storage facility investments. The city has a growing population, and the demand for storage is increasing. This post will explore the basics you need to know about Lake Havasu storage investments.
Lake Havasu Storage Investments: What Investors Need to Know
Storage investing is a commercial real estate investment involving buying a storage facility. The investor owns a property with secure storage spaces. Clients or customers pay the company a monthly fee in exchange for using the storage space.
Advantages of Storage Investing
- Easy to Manage: Storage facilities are easier to manage than many other commercial properties. The property might just be an array of storage units with various security features. Since clients manage the storage themselves, you don’t even need a lot of staff.
- Sustainable: These businesses tend to be resilient during economic downturns. People will always need storage space. Having multiple clients paying monthly fees also results in reliable income.
- High Returns: Storage units are typically cheaper to buy than properties like apartments or office buildings. They also cost less to maintain. That means they offer a higher potential for good returns on your investment.
Ways to Invest in Storage Facilities
The primary method for storage investing is to buy a facility and charge fees to generate revenue. However, there are other ways to invest in storage. The following are some of the common options:
- Purchase an existing facility
- Buy land and build a new storage facility
- Obtain shares in a storage REIT
- Buy shares in a storage facility company
Research the Locations
The success of your investment in storage facilities is highly dependent on your location. While Lake Havasu might be a promising market, different locations in the area might have more to offer. For example, being near a commercial region can be beneficial if businesses are your primary clients. Consider your target clients and how accessible the facility is for them. Beyond accessibility, the visibility of the location is also important.
Local Competition
The promise of high returns might get you excited about diving into the world of storage investing. However, you must also analyze the local competition. See what they do to appeal to clients. Try to find untapped niches or underserved clients. Look for ways to set your business apart from the competition. It can also help to analyze supply and demand trends along with local storage rates.
These are just some things you should consider as a first-time storage investor. Keep updated with the latest news and trends to stay ahead of the competition and maximize your returns.
